Employers of thousands of marine crew are being urged to be prepared following changes to the Standards of Training, Certification and Watchkeeping (STCW) - or face potentially being unable to set sail.
The changes affect UK seafarers who hold basic STCW certification, or have six months or more sea service prior to 1 August 1998 and are deemed to be qualified in any of the following:
George Masson, Marine Team Leader at Petrofac Training Services’ (PTS) quayside facility in Aberdeen, explained: “The changes are being introduced to ensure seafarers maintain the necessary standards of competence to undertake practical emergency, occupational safety and survival functions such as launching life rafts or dealing with fires.”
As of 1 January 2017, seafarers must have completed the training course or updating training within the previous five years, followed by refresher training every five years.
While the requirements are being introduced globally, UK employers are expected to be amongst those most affected as updating training has already been standard practice in many regions. Seafarers who hold UK certification have been required to demonstrate their competence on an ongoing basis on board their vessel but are unlikely to have undertaken approved refresher training.
Crewing companies and owners or operators of all types of vessel will be affected, including supply ships, support vessels, ERRVs, FPSOs, drillships, ferries and flotels, amongst others.
George Masson added: “The new requirements will apply to thousands of seafarers, so we are encouraging companies to be ahead of the game and to plan their training schedules accordingly. The worst case scenario is that workers may not be able to sail and carry out their duties but this can be avoided.”
PTS is approved by the UK Maritime and Coastguard Agency (MCA) to deliver initial and updating training for all the required courses, and is also arranging an increasing number of courses to meet customer-specific requirements.
With only three weeks left to become part of the presentation line-up for this year’s SPE ICoTA European Well Intervention Conference, experts in well intervention are urged to submit an abstract on the topic and share the latest developments in the field with their peers.
Global upstream oil and gas deal activity, including capital markets and Mergers and Acquisitions (M&A), totaled $19.3 billion from 125 transactions in June 2015, marking a $4.3 billion decrease in value from the $23.6 billion across 119 deals posted in May 2015, says research and consulting firm GlobalData.
According to the company’s latest monthly upstream deals review*, upstream M&A accounted for $8.8 billion from 18 transaction announcements in June 2015. While this was a significant drop from $11.7 billion in May 2015, the number of M&A transaction announcements increased from 13 in the previous month.
Matthew Jurecky, GlobalData’s Head of Oil & Gas Research and Consulting, states: “Capital raising continues at the healthy clip seen in 2015, driven by debt offerings in the US almost a year from prices collapsing. Companies continue to seek financial flexibility and restructure short- and reserves-based capital to avoid bankruptcy.”
GlobalData’s report says that Europe, the Middle East and Africa (EMEA) led the global acquisitions market in terms of value in June 2015, with a 39% regional share totaling $4 billion. This came from 18 deals, of which 14, with a combined value of $4 billion, were announced, and four, with an undisclosed value, were completed. The majority of M&A activity in EMEA was centered on offshore assets, which delivered the greatest share of deal volume with 10 deals in June 2015.
Jurecky comments: “M&A momentum continued in June with Emirates National Oil Company proposing a buy-out of Dragon Oil, BP buying a stake in one of Rosneft’s Siberian fields, and Wintershall selling a package of North Sea assets to Tellus Petroleum (Tellus).”
Other significant transaction announcements include a proposed $2.3 billion merger between Vedanta and Cairn India, as well as an acquisition of royalties from Cenovus for $2.67 billion by the Ontario Teachers' Pension Plan.
Jurecky concludes: “Market conditions will continue to fuel a desire for M&A. After a failed attempt years ago, Emirates National Oil Company is another case of a company taking advantage of depressed asset values to consolidate ownership in one of its positions, Dragon Oil.
“On the other hand, Wintershall is disposing of lower growth assets, which for Tellus is an opening into a stable and dependable production base.”
Having seen significant increases in sales activity from the North America market in recent months, UK-based Advanced Insulation – a leading manufacturer of technical and insulation materials for the upstream oil and gas industry; and specialist in the design, engineering and manufacture of polymer solutions for the marine and offshore sectors – is expanding its Houston, Texas-based operation with an additional 10,000 sq. ft. manufacturing facility.
Announcing the move, Advanced Insulation’s managing director Andrew Bennion says: “The 10,000 sq. ft. expansion means we are now even better placed to assist our North American customers more effectively by providing an in-house insulation facility.”
Until now, most insulation services were undertaken at its customers’ facilities, but the expansion means Advanced Insulation can now insulate subsea components and systems using its ContraTherm® range at its own warehousing and manufacturing facility.
As Andrew goes on to say, the recent appointment of Mike Sherman and Larry King to develop and implement Advanced Insulation’s strategic growth plans for this key market is already paying dividends. “We are forecasting subsea sales to increase significantly in the coming months and are anticipating substantial additional appointments to ensure we continue to meet and exceed the demands and expectations of our North American customers.”
Operator Statoil and its PL146/PL333 partner Total E&P Norge have made a gas and condensate discovery in the Julius prospect in the King Lear area in the North Sea.
The discovery well 2/4-23S, drilled by Maersk Gallant, proved gas and condensate in the Ula formation. Statoil estimates the volumes in Julius to be between 15 and 75 million barrels of recoverable oil equivalent.
The well 2/4-23S aimed also to appraise the King Lear gas and condensate discovery made by the PL146/PL333 partnership in 2012.
The well provided important information on reservoir distribution and reservoir communication in the King Lear discovery. The acquired data will now be further analyzed.
It is expected that the King Lear volumes will stay within the previously communicated range of 70-200 million barrels of recoverable oil equivalent.
“The King Lear and Julius discoveries are located in one of the most mature parts of the Norwegian continental shelf - just 20 kilometers north of Ekofisk, the first commercial NCS discovery made 45 years ago. The discoveries confirm Statoil’s view that even such mature areas of the NCS still have an interesting exploration potential,” says May-Liss Hauknes, Statoil vice president for exploration in the North Sea.
“Since the King Lear discovery, the main focus of the license partnership has been to clarify the resource basis within PL146/PL333. Following the positive results of the Julius well, the partnership will start working on an optimal plan for a timely development of the discovered resources. The Julius discovery will be included in the resource base for a future PL146/PL333 development decision,” says Edward Prestholm, acting head of early phase field development on the NCS in Statoil.
NYC-based PIRA Energy Group reports overall commercial stocks built but the excess modestly narrowed. In Japan, crude runs declined due to typhoons and crude stocks drew on low imports. Specifically, PIRA’s analysis of the oil market fundamentals has revealed the following:
U.S. Stocks Build but Excess Modestly Narrows
Overall commercial stocks built 2.9 million barrels, 2.3 million barrels less than last year’s increase for the same week, narrowing the year-on-year stock excess to a still hefty 144.4 million barrels, or 12.8%. The crude stock surplus to last year widened to 93 million barrels, or 25%. Cushing crude stocks are 39 million barrels over last year, a new high for the year.
Japanese Crude Runs Decline Due to Typhoons, Crude Stocks Draw on Low Imports
Crude runs declined due to the impacts from a typhoon, which also kept crude imports very low such that crude stocks posted a large draw. Finished product stocks rose due to a build in jet-kero and fuel oil. Gasoline demand was higher from holiday impacts and stocks drew. Gasoil demand was also higher, producing a modest stock draw. The indicative refining margin remained good and was little changed.
Gas Tanker Rates Falling
Spot VLGC tanker rates look to have peaked with the benchmark Ras Tanura to Chiba, Japan rate falling $20 to $120/MT after reaching the year’s highest levels a week ago. LPG length in the AG has led to suppliers leaning on term purchasers to lift contracted volumes, which squeezed an already extended gas tanker market. Supply in Asia, set to benefit from additional AG deliveries, has reacted to crimp spot arbs from the U.S. by the most in a year – which may very well lead to an increase in spot VLGC availabilities – and thus the peak may now be in for tanker rates. With new build tanker deliveries accelerating from here thru next year – rates may not return to these levels for some time.
Ethanol Prices Decline
The week ending July 17, U.S. ethanol prices tumbled to the lowest level in almost a month, tracking the decline in corn and oil values. The six-week low output of ethanol-blended gasoline during the preceding week was also bearish.
U.S. Ethanol Output Lower
Ethanol production fell for the second consecutive week as some plants have been operating at lower rates due to poor margins. Inventories dropped by 181 thousand barrels to 19.6 million barrels, though PADD III was the only region where stocks decreased.
The information above is part of PIRA Energy Group's weekly Energy Market Recap - which alerts readers to PIRA’s current analysis of energy markets around the world as well as the key economic and political factors driving those markets.
Spring 2015 Permanent Reservoir Monitoring (“PRM”) operations over the Statoil operated Snorre and Grane fields have now been completed ahead of schedule thanks to a combination of excellent operational performance, minimum downtime and favourable weather conditions.
A total of over 6,000 km of data has been shot over the two fields, now in the second full year of operation. Source operations started over the Grane field after mobilization in Stavanger on the 3 May with completion on Snorre on the 13 July. The D-PMSSTM has now been demobilized from the platform supply vessel ‘Siddis Sailor’, operated by OH Meling, and will be re-mobilized again later this Summer for the Autumn survey period.
Marcus Smith, Operations Director commented: “We have had two excellent surveys this season with the best recorded production figures and lowest downtime hours seen since we started the PRM survey for Statoil. Records have been broken and all with zero HSE incidents during this time. The working relationship between the WGP and OH Meling crew onboard the ‘Siddis Sailor’ has gone from strength to strength and this cooperation has helped us achieve this outstanding performance. We look forward to returning in the Autumn and acquiring yet more data to assist Statoil in increasing their PRM data library”.
After extensive review and under a robust array of safety requirements, Bureau of Safety and Environmental Enforcement (BSEE) Director Brian Salerno announces that Shell has received conditional approval of two Applications for Permits to Drill (APD) to conduct limited exploratory drilling activities in the Chukchi Sea offshore Alaska. Specifically, the APDs limit Shell to drilling only the top sections of wells and prohibit Shell from drilling into oil-bearing zones.
Shell currently is not permitted to drill into oil-bearing zones because, to do so, BSEE requires that a capping stack be on hand and deployable within 24 hours. A capping stack is a critical piece of emergency response equipment designed to shut in a well in the unlikely event of a loss of well control. Shell’s capping stack is staged on the vessel M/V Fennica, which is currently en route to Portland, Oregon, for repairs. If and when the M/V Fennica is capable of being deployed in the Chukchi Sea and Shell is able to satisfy the capping stack requirement, the company may submit an Application for Permit to Modify the APDs and request to have this restriction reconsidered.
“Without question, activities conducted offshore Alaska must be held to the highest safety, environmental protection, and emergency response standards,” said Salerno. “Without the required well control system in place, Shell will not be allowed to drill into oil-bearing zones. As Shell conducts exploratory activities, we will be monitoring their work around the clock to ensure the utmost safety and environmental stewardship.”
In addition to restricting Shell’s ability to work in oil-bearing zones, the APDs also define limitations related to marine mammal protection consistent with requirements established by the U.S. Fish and Wildlife Service (USFWS). Consistent with regulatory requirements, a USFWS Letter of Authorization (LOA) issued on June 30 requires Shell to maintain a minimum spacing of 15 miles between active drill rigs during exploration activities to avoid significant effects on walruses in the region. Under the limited permits granted today, Shell may proceed with drilling the top sections of two wells at the Burger Prospect, Burger J and V as described in the company’s Exploration Plan (EP), which are located less than 15 miles apart. As such, Shell is prohibited from conducting simultaneous drilling activity at these wells. Specifically, Shell must plug and abandon the top section of the first well before proceeding with any drilling activity at the second well site.
Under the LOA, Shell is also required to have trained wildlife observers on all drilling units and support vessels to minimize impacts to protected species. Shell must stay within explicitly outlined vessel operating speeds and report daily regarding all vessel transits.
The APDs were approved only after careful review of the adequacy of Shell’s ice management plans in the absence of the M/V Fennica as well as the consistency of the plans with protections in place for marine mammals. In addition to redundancy provided by other ice management support vessels, Shell will employ aerial reconnaissance over flights, satellite imagery and other measures to monitor ice floes to fulfill the operational goals of the ice management plan in terms of early detection and site safety. The use of these enhanced technologies will allow Shell to meet its operational requirements for ice management, while conforming to the Hanna Shoal Walrus Use Area restrictions identified by the USFWS.
In addition to defining the specific limitations described above, BSEE’s review of the APDs also included thorough analysis of information submitted by Shell – including well casing design, equipment design, testing procedures, safety protocol, third party certifications of key equipment and rig information – for technical adequacy, safety, and environmental compliance. Shell was required to address any issues and inadequacies identified by BSEE before the APDs were approved.
To ensure compliance with this and other conditions of the APDs, BSEE safety inspectors will be present on the drilling units Noble Discoverer and Transocean Polar Pioneer 24 hours a day, seven days a week to provide continuous oversight and monitoring of all approved activities. The inspectors are authorized to take immediate action to ensure compliance and safety, including cessation of all drilling activities, if necessary. BSEE experts have been engaged in thorough inspections of both drilling units and Shell’s response equipment.
The Burger Prospect is located in about 140 feet of water, 70 miles northwest of the village of Wainwright.
BSEE’s close oversight of drilling operations in the Chukchi Sea this year is consistent with its continuing efforts over the past five years to upgrade safety standards to improve the safety of offshore oil and gas development. In addition, building on the lessons learned from Shell’s 2012 drilling operations in the offshore Arctic and incorporating the recommendations of a Departmental review of those activities, BOEM on May 11, 2015, provided conditional approval of Shell’s Exploration Plan that incorporated the safety requirements set forth in Shell’s Exploration Plan and established numerous additional stringent safety requirements that must be met before Shell can drill into oil-bearing zones.
All phases of an offshore Arctic program – preparations, drilling, maritime and emergency response operations – must be integrated and subject to strong operator management and government oversight, as detailed in Shell’s Integrated Operations Plan;
A shortened drilling season to allow time for open-water emergency response and relief rig operations late in the drilling season before projected ice encroachment;
Capping stack must be pre-staged and available for use within 24 hours;
A tested subsea containment system must be deployable within eight days;
The capability to drill a same season relief well;
A robust suite of measures to avoid and minimize adverse impacts to marine mammals and their habitat, impacts to Native subsistence activities, and other environmental impacts;
and Drilling units and their supporting vessels must depart the Chukchi Sea at the conclusion of each exploration drilling season.
The Department has also published proposed regulations to ensure that future exploratory drilling activities on the U.S. Arctic Outer Continental Shelf are done safely and responsibly, subject to strong and proven operational standards and Shell’s Chukchi Sea operations are being held to many of standards in the proposed regulations.
On Thursday July 23rd, senior representatives of Maersk Supply Service, DeepOcean UK and the Damen Shipyards Group gathered at Damen Shipyards Galati, Romania to witness the launching of subsea support vessel Maersk Connector. The vessel is owned and operated by Maersk Supply Service and is built to contract for a seven year charter agreement with DeepOcean.
Maersk Connector is the second of a new generation of cable-laying vessels developed by the Damen Shipyards Group. Equipped with survey and trenching capabilities, she will extend DeepOcean’s capabilities in the larger cable-laying end of the market, representing a new focus on interconnector projects in addition to oil and gas sector and renewables work. Her 7,000 tonne carousel will make her well suited for installation and burial projects from land-fall to deep water and also for operations in remote geographical locations. The vessel is designed to meet the high standards demanded by North Sea oil and gas customers.
Launch-of-Maersk-Connector
Pierre Boyde, Commercial Director at DeepOcean, said; “We are delighted to see the positive progress being made on this high quality Damen vessel and are very pleased with the working relationships with our partners. Last week we signed our first project for the Maersk Connector - on the Bligh Bank Wind Farm - and look forward to finalising further contracts elsewhere in the near future.
“This new vessel will be a critical part of our growth strategy, delivering production efficiencies that will contribute to the lowering of costs in the offshore wind sector. In particular it will play an important part in the roll-out of the next generation of interconnectors that will contribute so much towards maintaining the UK’s energy security and lowering the wholesale cost of electricity.”
Chief Commercial and Strategy Officer at Maersk Supply Service, Søren Karas, stated, “We are naturally very pleased to see that our long-term customer DeepOcean has already assigned the vessel to its first project, and we look forward to providing superior marine operations to enable DeepOcean’s continued success.”
Developed as a flexible platform for both transport and installation work offshore, the DOC 8500 is 138 metres in length and has a beam of 27.5 metres. The 9,300 dwt vessel features 2,200 square metres of unobstructed deck with a loading capacity of 20t/m2 and ro-ro capability. Top speed will be 12 knots.
Speaking at the launch, Remko Bouma, Sales Manager at Damen Shipyards Gorinchem, commented, “We are very pleased that the project is meeting all its milestones precisely on time, and the co-operation with the clients has been excellent. We are confident that the rate of progress will continue up to delivery in February 2016.”
Following the launch, the Maersk Connector is now berthed at Damen Shipyards Galati and installation is getting underway on the helideck, cranes and bridge, as well as the fitting-out of the interior. Sea trials are expected to commence by the end of this year.
The subsea sector is highly consolidated with just five players servicing the $12billion annual requirements of the global E&P community. The two largest, FMC and OneSubsea, account for approximately two-thirds of the market but despite this, have shown no signs of resting on their laurels, forging strategic partnerships to reshape and redefine the commercial landscape. This has become increasingly critical as projects have grown in scale and complexity.
Recent years have seen a shift in focus from mechanical tree designs towards value added instrumentation, monitoring and processing technologies. The joint venture between Cameron and Schlumberger to form OneSubsea in 2013 is a deliberate attempt to unite the former’s subsea skill with the latter’s downhole and processing expertise. Likewise, the recent partnership between FMC and Technip to form Forsys Subsea, combines subsea production, processing and installation capabilities, minimising both supply chain and technological interfaces for the end user.
Ultimately, E&P companies have been gradually moving from a ‘pick and choose’ approach, to procuring systems from a single vendor. DW data suggests that 15 years ago, nearly a fifth of subsea wells installed had different manufacturers for the trees and controls. In 2015 it is expected that over 95% of subsea trees installed will have wellheads and controls from the same manufacturer. This trend is set to develop further with an appetite for standardisation of subsea equipment that has been driven by cost pressures, lower oil prices and the subsequent need to deliver projects on-budget, on-time.
Bruno Faure, Group Senior Vice President Subsea Projects and Operations at Technip, a world leader in project management, engineering and construction for the energy industry, has taken over the role of President of the International Marine Contractors Association (IMCA), the association representing the interests of over a thousand offshore, marine and underwater engineering companies in more than 60 countries.
In addition to becoming President of IMCA, having served as Vice President of IMCA since September 2014, he also becomes Chairman of the association’s Overall Management Committee (OMC).
“We welcome Bruno as our President and OMC Chairman for the next two years,” says Jane Bugler, Acting Chief Executive of IMCA. “At the same time we are able to announce that Leon Harland, Executive Vice President Commercial & Technology at Heerema Marine Contractors, has taken over as the IMCA Vice President.
“I am delighted and honored to take the chairmanship of IMCA following on from Massimo Fontolan, who provided valuable guidance to the Council over the last two and a half years,” says Bruno Faure. “At a time when our industry is experiencing challenging times, I am convinced that IMCA can, more than ever, play a key role in facilitating the necessary constructive dialogue among clients, contractors and the supply chain, with the aim of offering to the industry the most appropriate solutions in the context of economic pressure.”
In 2006 he joined Stolt Comex Seaway (now Subsea 7) as Projects and Operations Director for Africa Region and then became President for Region Africa, Gulf of Mexico and Mediterranean in Subsea 7 based in London.
Further information on IMCA Information on IMCA and its work on behalf of its members is at www.imca-int.com or from This email address is being protected from spambots. You need JavaScript enabled to view it. and IMCA, 52 Grosvenor Gardens, London SW1W 0AU, UK. Tel: +44 (0)20 7824 5520; Fax: +44 (0)20 7824 5521.
In 2005, Bourbon becomes the 1st offshore operator to adopt an inverted bow vessel, the Bourbon Orca. A look at this innovative design, dubbed the X-BOW®.
In 2006, the Bourbon Orca joined the BOURBON fleet, the very first inverted-bow AHTS designed by the Norwegian ship designer ULSTEIN. The main feature of this vessel: a slender hull water line and a smoother volume distribution in the foreship, particularly suited to the navigational conditions in the North Sea. The payoff: better handling and reduced pitching in rough seas. "While a traditional bow vessel rises on the waves and then drops violently onto the surface of the water, an X-BOW® vessel, less subject to the vertical motions induced by the waves, continues on course more smoothly, while maintaining its speed. And because it uses less fuel to get through the waves, it also helps to save energy," says Tore Ulstein, Deputy CEO and Chief Market & Innovation Officer in Ulstein Group.
The Bourbon Orca in operation
So we can understand why this type of vessel also offers more comfortable working conditions for the crew. "Less shaking, it also means less vibration, less noise and less splashing,"says Arnkjell Brandal, who was the first officer to command the vessel, until May, 2015. This seafarer, used to traditional bows tells us of his first impressions on board. "It was like a shock, paradoxically. This vessel was nothing like what I had experienced before! But I soon felt the difference, especially in traction situations: fluidity, strength and stability!"
Propelled By Bourbon
The Bourbon X-BOW® story starts in 2004, when ULSTEIN was working with BOURBON and several industry players on a project to improve the safety of anchor handling operations. "Trond Myklebust, who at the time was Marketing Director of Bourbon Offshore Norway, challenged us: to rethink the design of parts of the vessel, including the bow," explains Tore Ulstein. For the Norwegian designer and shipbuilder, all the ingredients required to design tomorrow's offshore vessel were assembled: the encouragement of a customer who is a leader in its market, a constant search for innovation, and a strong partnership with leading players. "BOURBON asked us to dare... and together we did it!" Ulstein Deputy CEO and Chief Market & Innovation Officer.
The advantages of the X-BOW® design were revealed late in 2004 and the start of 2005, when tested in a towing tank. As Tore Ulstein explains: "We conducted these tests with scale models, but in real situations, with waves from different directions to analyze the vessel's behavior. The very positive results encouraged us in this direction." In April 2005, BOURBON would go on to acquire its first X-BOW® vessel!
One Innovation Includes
Others If the X-BOW® design remains the flagship innovation of the Bourbon Orca, this vessel is also equipped with a new anchor-handling system and diesel-electric propulsion. "With very good energy efficiency, it is also equipped with azimuth thrusters which allow it to rotate 360° for quick direction changes," says Arnkjell Branda, former captain of the Bourbon Orca.
Sparrows Group has expanded into the Malaysian market after forming a strategic partnership with a local service provider in the region, Efficient Technology Sdn Bhd (Eftech), as part of the company’s ambitious plans to treble business in Asia Pacific over the next five years.
As part of the country-wide agreement, Sparrows Group will offer services such as offshore crane maintenance, crane hire, fluid power, inspection and cable and pipe lay products which are in particularly high demand in the region.
Sparrows Group already works with a number of drilling companies in Malaysia however it is expected that the agreement with Eftech will enable this to increase significantly.
Stewart Mitchell, chief executive officer at Sparrows Group, said: “We see Asia Pacific as a key growth area for Sparrows Group in the coming years. Malaysia’s oil reserves are the fourth highest in Asia Pacific and by partnering with a well-respected local company that shares our commitment to assure delivery to clients, such as Eftech, we believe we are on the right track to realizing our aims.
“In many ways a partnership with Eftech is a perfect fit as we complement each other’s strengths. Eftech is an established provider of process and pipeline services, combined with our in-depth knowledge of lifting and handling, fluid power and cable and pipe lay we will provide operators with an integrated specialist service of the highest standard.”
At present Sparrows Group employs over 120 people in Asia Pacific and over 2,100 globally. They currently have bases in Singapore, Myanmar, Australia, China and two in Indonesia in the region.
Malaysian regulations stipulate all offshore service activity for Petronas, the state’s national oil and gas company, should be carried out through a local company.
The agreement with Eftech, which was founded in 2002, will see the company supporting Sparrows Group in providing its services across Malaysia’s three producing offshore basins. At present there are more than 130 offshore operating platforms in Malaysia and over 30 drilling rigs.
Dato’ Mahathir Samat, managing director of Eftech said: “Our partnership with Sparrows Group and their considerable track record in crane maintenance services has been integral to us being awarded a license for this type of work by Petronas. There is a demand in our local market for the level of service we can bring through our partnership which I am sure will bring many benefits to the Malaysian offshore sector.”
Established originally in 1946, the Sparrows Group moved into the oil and gas market in 1975 and celebrates 40 years working offshore this year. They are one of the most well-known and trusted names in the oil and gas industry. The company provides engineered products and services, primarily to the offshore sector, specializing in lifting and handling, cable and pipe lay, and fluid power solutions.
Total has signed an agreement to sell 20% of its interests in the Laggan, Tormore, Edradour and Glenlivet fields, located in the West of Shetland area, to SSE E&P UK Limited Ltd for £565 million (around $876 million), subject to the customary approvals.
“The sale of these minority interests is aligned with Total’s portfolio management strategy and target of divesting $5 billion of assets in 2015. It allows us to capitalize fully on this new deep offshore development, while retaining a majority interest and operatorship,” commented Arnaud Breuillac, President, Exploration & Production. “With the upcoming start-up of Laggan, followed by Tormore, Edradour and Glenlivet in the coming years, Total is opening up a new frontier area for gas production in the United Kingdom.”
Following completion of the transaction, Total will hold a 60% operated interest in the Laggan, Tormore, Edradour and Glenlivet fields, alongside partners DONG E&P (UK) Limited (20%) and SSE E&P UK Limited (20%). The sale also includes 20% of Total’s interest in the Shetland Gas Plant and interests in several exploration licenses located in the West of Shetland area, including the Tobermory discovery.
Laggan and Tormore
The Laggan and Tormore fields are located around 140 kilometers west of the Shetland Islands on Blocks 206/1a, 205/4b and 205/5a, in 600 meters of water. Development of the fields was launched in 2010 and first gas is expected in the coming months. The development concept consists of a 140-kilometer tie-back of five subsea wells to the new onshore Shetland Gas Plant, with a peak production rate of 500 million standard cubic feet per day.
Edradour and Glenlivet
Development of the Edradour and Glenlivet fields was launched in 2014. The Edradour discovery is located 75 kilometers northwest of Shetland on Block 206/4a, in 300 meters of water. The Glenlivet discovery is located north of Edradour on Block 214/30a, in 400 meters of water. Edradour will be developed by converting the discovery well into a production well, connected to the main Laggan-Tormore flowline by a 16-kilometer subsea tie-back. Glenlivet will be developed via two wells and a 17-kilometer production pipeline tied back to Edradour. Edradour is expected to start up in 2017, followed by Glenlivet in 2018.
BMT Cordah, a subsidiary of BMT Group, the leading international maritime design, engineering and risk management consultancy, has announced the appointment of Andrew Glass as Managing Director.
Andrew will be responsible for leading the business in implementing strategy, direction and policy, ensuring the company continues to provide an extensive range of specialist services to its UK and international offshore oil and gas customers. Commenting on his new role, Andrew said: “I am extremely excited to be given this opportunity to work with a great team and I’m looking forward to leading the organisation in its drive for future growth both here in the UK and internationally.”
With a wealth of experience in Environment Health and Safety (EHS) from the RSK Group where he held the position of Director, Andrew spent several years in the UAE developing new service lines. He helped bring the business back to profitability, achieving financial targets and delivered business benefits for clients with a 100% track record. He further supported the creation of an Eastern European office.
Notable projects include the operational review of three international and two domestic airports for the Abu Dhabi Airports Company. Here, he redefined EHSQ operational practices, as well as influencing the redesign of organisational structure. All five airports were certified to ISO9001, OHSAS 18001 and ISO14001 standards.
Andrew has a degree in Industrial and Operations Management and is a member of the: Chartered Management Institute and Institute of Management Consultancy. He is an Associate of the Institution of Environmental Management and Assessment and an approved professional by the EHS centre Abu Dhabi for all entity sectors.
FoundOcean’s deep-water capabilities were demonstrated once again when Subsea 7 called on them to develop and execute grouting procedures for operations at 5,300 ft. (1,615m) in the Gulf of Mexico.
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